Contract for management of Muskegon County Wastewater Management System could be headed for court

MUSKEGON COUNTY — The users of the Muskegon County Wastewater Management System might be watching a slow train wreck when it comes to reaching agreement on a new 20-year contract to operate the countywide system.

Chronicle file photoThe wastewater systemâs management committee presented a consensus draft of a new contract that spells out the management of the sewer system to Muskegon city commissioners last week. The city of Muskegon might reject the critical contract, which would likely throw the issue into the courts.

The wastewater system’s management committee presented a consensus draft of a new contract that spells out the management of the sewer system to Muskegon city commissioners last week.

Representatives of the other 14 cities and townships that are connected to the sewer system got the strong indication that Muskegon at this point would reject the critical contract. That would likely throw the issue into the courts for a protracted legal battle.

The other municipalities seem poised to approve the agreement that replaces the original 40-year contract that created the wastewater system.

The countywide system has been heralded as the best example of government cooperation and environmental stewardship in Muskegon County’s history.

Sewer customers in the city of Muskegon currently provide 40 percent of the flow to the massive treatment system, which is in Egelston and Moorland townships. Not having the city part of the agreement would create a major problem for the system, according to Scott Huebler, chairman of the wastewater management committee and Whitehall city manager.

If the city has not approved the contract with the other municipalities by Dec. 4, the management committee — which includes representatives of all 15 communities served by the system — would go to court to force Muskegon’s acceptance of a contract or removal from the system, Huebler said.

Management committee attorney Michael Ortega said the city’s participation would be needed for a bond issue to pay for a major repair, improvement or expansion. Without city concurrence, investors would not purchase the bonds, Ortega said.

If the sewer system, for example, would experience another of the major pipe breaks like it has suffered over the years, the system would have to sell bonds to make emergency repairs, Huebler said. Thus, the wastewater system cannot go forward without city of Muskegon participation, he said.

However, city commissioners remain adamant that the proposed contract already approved by 11 other municipalities in the system is unfair to city residents.

At the heart of the objection is the fact that the city provides 40 percent of the financial support for the system, but the new contract has each city and township having the same vote on expansion issues. Unlike the original contract, the new 20-year agreement would require management committee approval for expansions, along with approval from the Muskegon County Department of Public Works Board and the wastewater system director.

Under the new contract, it would take 10 votes on the 15-member management committee for approval of system expansion.

The proposed new contract calls for each municipality — no matter of size or amount of flow into the system — to have the same vote.

“With the city being 40 percent of the system and having to pay 40 percent of the cost of expansions, we only get 6 percent of the vote,” Muskegon City Commissioner Steve Wisneski said.

Huebler reminded commissioners that currently no municipality has any vote on expansion, a decision now solely with the county. He also said that all cities and townships are paying the same sewage rate to the county for service and all would have the same vote.

“The voting doesn’t address our population or our flow,” Spataro said. “We need to look out for the interests of the residents of the city. I don’t think it is fair or democratic. I can’t support (the contract) as presented.”

Huebler said the time for negotiations has ended, and all the other cities and townships appear to be approving the agreement. The management committee approved the proposed contract 14-1, with the city of Muskegon’s representative being the lone vote against it.

Muskegon Mayor Steve Warmington said he thinks the city commission would reject the contract if the vote were today. The city expects to take up the agreement again at its Nov. 8 work session and Nov. 9 regular meeting, he said.

“This is a difficult decision for the commissioners of the city of Muskegon,” Warmington told the management committee delegation.